You must renew your car insurance policy every year. However, you can reduce the price of the premium significantly by following some steps.
Renewing a car insurance policy always pinches our pocket. The Motor Vehicle Act makes it mandatory to have valid car insurance and most importantly, it keeps you from paying for accidental damage on roads.
Here is how you can reduce the amount you pay for your car insurance premium.
- Don’t Take Claim for Small Expenses
No Claim Bonus (NCB) can go up to 50% of the premium if you don’t take claim. Hence, avoid taking claims for small dents or scratches that cost only a small amount to repair. Why lose a discount of 20% to 50% on your premium when you can just get the repairs done for a few hundred rupees. Hence, it would be wise to stop making small claims just for the sake of it.
- Increase Deductibles
Increasing the amount of voluntary deductibles can significantly reduce the premium amount of your car insurance policy. For instance, for a claim of 50,000, if your voluntary deductible is 25,000 then your premium would reduce accordingly as per the policy of your insurance provider.
- Transfer NCB
If you are planning to upgrade from your old car to a new car, you can transfer your NCB to the new vehicle’s insurance policy. You would need a NCB certificate from the insurance company to transfer the benefits of your NCB to the new policy.
- Research and Purchase Online
You can easily compare the features and prices of all the car insurance policies on the internet. Select a policy that fits all your requirement and is available at the best price. However, before selecting the cheapest policy, make sure to check out the claim settlement ratio, partner garage network, road assistance feature and customer support of the insurance provider to make an informed decision.
Buying a car policy also saves you from paying a hefty commission to insurance advisors. Hence, it saves a lot of money.
- Declare IDV
Insured Declared Value or IDV, is the declared of the car set by the insurance company. Declared IDV is the maximum amount an insurer is liable to pay in case of theft or total loss. It is calculated using depreciation over the original ex-showroom price of the car. Higher IDV means a higher premium.
Therefore, declare the correct IDV of your car to keep the premium of your policy in check. But keep in mind that if you declare the lowest value, then that would the only amount you would get in case of theft or loss.
- Install an Anti-Theft Device
Insurance companies always reward car owners who are due diligent towards the safety and security of their vehicles. Install anti-theft devices to assure the insurance provider that you are keeping your car safe. This would also make you eligible for a 5% discount on the premium of your car insurance policy.
- Renew Your Policy Before It Lapses
Policy renewal happens without the inspection of the car which saves you from exposing any fresh dents and damages to the insurer. But in case the policy expires, the policy provider inspects the vehicle again and might increase the price of premium depending on the condition of your vehicle.
Hope this helps!